To sell your business is a once-in-a-lifetime activity for many business owners. While you may be wondering how to sell a business, rest assured that there are seasoned professional advisers who can help you refine your business exit and provide valuable tips for successful business exit planning.
You may have been approached by a third party or your management team. Alternatively, perhaps you’re simply thinking of progressing on to the next adventure and would like to realise the value of your time and efforts.
Sell Your Business: When to Start Considering the Sale
Ideally, you should begin thinking about your business exit the day you begin your business, especially if the plan is to grow the business rather than operate as a lifestyle business. This means everything from your staff, your contracts, suppliers, to your computer systems. By embedding scalability and structure from the outset, you’ll be in a far stronger position when the time comes to sell.
Sell Your Business: Assessing Suitable Exit Options
The more possible people you have lined up as buyers, regarding any potential exit option, the more options you have when it is time to sell. For a trade buyer, you are more likely to get the most synergistic value between the two companies. However, not every business is suitable for a trade buyer. This is where a private equity buyer or a management buyout may be more suitable.
While a management buyout may bring you the least synergistic value, it may be a preferred option for those approaching the sale in an altruistic mindset. This is for business owners with consideration of their employees at the front of their minds.
Sell Your Business: Undertaking a Valuation
It is key to undertake a valuation if you are aspirational to a certain value. You need to set a target and work towards it. Think of it like selling a property: if your apartment is valued at £1 million, you’re unlikely to achieve £3 million unless you make significant changes. However, while a valuation provides a technical benchmark, it’s not the final word on what your business is worth.
Sell Your Business: Enlist fds’ Services
Backed by 400+ completed deals and strong industry ties across the UK, fds delivers expert guidance, tailored solutions and a focus on achieving your goals.
Wondering if now is the right time to sell your business? Considering your business exit choices? Do not hesitate to contact us for a confidential discussion.